The UK's Pension Protection Fund (PPF) has published new versions of valuation guidance documents to allow for the Retained EU Law (Revocation and Reform) Act 2023 and the Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023.

As reported by our sister publication Pensions Age, these pieces of legislation affect how the Hampshire and Bauer judgments are incorporated into PPF compensation for schemes that enter an assessment period from 2 January 2024.

It has also updated its information note for valuing benefits in respect of the Hampshire, Hughes and Bauer judgments in a section 143 valuation.

The new versions of valuation guidance and the information note set out how the judgments and related legislation should be allowed for in s143, s152, s156 and s179 valuations.

Updated guidance documents include: Guidance for undertaking the valuation in accordance with section 143 of the Pensions Act 2004 (version H8); guidance for actuaries conducting a valuation under section 152 and a statement setting out how the PPF make a funding assessment under section 152 of the Pensions Act 2004 (version D5); guidance for actuaries conducting a valuation under section 156 of the Pensions Act 2004 (version C5); guidance for undertaking the valuation in accordance with section 179 of the Pensions Act 2004 (version G10); and a statement on how the PPF will make a funding determination (version F3).

The PPF’s updated information note seeks to supplement H8, D5 and C5, and provide more detail for actuaries carrying out s143, s152 and s156 valuations.

“The new versions of the valuation guidance documents and information notes are effective from 1 January 2024,” the PPF stated.

“Schemes and advisers who are in the process of carrying out s143, s152 or s156 valuations under an earlier version of the relevant guidance should discuss the approach with their usual PPF actuarial contact.”

---